Akshaya Tritiya 2018 to Boost Gold Jewelry Sales by Nearly 20%

SEATTLE (Scrap Monster): Jewelers in India are expecting significant boost in gold jewelry sales during upcoming Akshaya Tritiya- the gold buying festival. Despite high prices of gold, jewelers anticipate 15-20% jump in sales this Akshaya Tritiya, mainly on the back of positive market sentiment and ongoing wedding season.

According to Nitin Khandelwal, Chairman, All India Gem and Jewellery Domestic Council (GJC), the overall positive market sentiment could lift gold sales by nearly 20% when compared with the previous year. He predicted increased demand for trendy jewellery items and wedding jewellery. The weakness in demand for high-end niche jewelry is likely to prevail during the season, he added.

Saurabh Gadgil, Vice President, India Bullion and Jewellers Association (IBJA) foresee 10-15% growth in sales over the previous year. After being faced with scams, the market has now started picking up. The better monsoons last year may result in a spillover of demand to this Akshaya Tritiya, Gadgil noted. Small ticket jewelries, wedding jewelries and coins will be the most popular choices, he added.

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Gold retailers across the country have reported increased bookings for wedding jewelries, the delivery of which will take place on the Akshaya Tritiya day. Also, many retailers have announced various offers and promotions on the occasion. It must be noted that gold jewelry exports had almost doubled in February this year.

UAE gold retailers too expect significant rise in jewelry sales. The upcoming Akshaya Tritiya, ongoing wedding season and the festival of Eid Al Fitr is likely to result in 15% growth in gold and diamond jewellery sales. Futher to imposition of value added tax (VAT) of 5% on gold jewelry, the sales had been subdued during the first month of the year. However, the sales witnessed modest recovery in the following months.

Buying gold on Akshaya Tritiya is a popular tradition among Indians. Incidentally, Akshaya Tritiya 2018 falls on Wednesday, 18, April.